M&A

Industrywide Issues | M&A | Pipelines | Research

Moody’s: Canadian Companies Still in Hunt for More US Pipelines
May 23, 2017May 23, 2017

Last year Canadian companies went on a midstream (pipeline) buying spree, snapping up major U.S. companies. In March 2016, MDN reported that Canadian midstream giant TransCanada, lusting for a bigger piece of the Marcellus/Utica pipeline pie, decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). That deal closed in July (see TransCanada and Columbia Pipeline Tie the Knot Today). Then in September, MDN reported Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy, based in Houston, for $28 billion (see Canadian Enbridge Buying US Spectra Energy for $28B). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. The merger was completed in February (see Spectra Energy is No More – $28B Merger with Enbridge Complete). According to a new report by Moody’s Investors Service, last year Canadian companies spent $89 billion to snap up utility and pipeline companies across the U.S. The report’s authors say they “anticipate more” such purchases this year… Read More “Moody’s: Canadian Companies Still in Hunt for More US Pipelines”
Energy Services | Industrywide Issues | Keane Group | M&A

Fracker Keane Group Continues Expansion, Buys RockPile Energy
May 23, 2017May 23, 2017

Keane Group is a Texas-based oilfield services company that provides fracking, wireline and top-hole air drilling services to oil and gas companies in the Marcellus/Utica as well as several other major basins. In January 2016, Keane announced they were buying out Canadian-based Trican Well Service for $247 million (see Oilfield Serv. Co. Keane Group Buys Trican Well Service for $247M). The expansion tripled Keane’s fracking capacity and gave it access to proprietary new technology. The buyout, and Keane’s hard work, bore fruit. Last December the privately-held company announced it will go public with an initial public offering (IPO) of stock, hoping to raise $287.5 million with the IPO (see Oilfield Services Co. Keane Group Floats $288M IPO). Keane is expanding again. Last week the company announced it’s buying out fracker RockPile Energy Services for $284.5 million. The newly expanded Keane will then take it’s place as one of the “top four or five” fracking companies in the United States… Read More “Fracker Keane Group Continues Expansion, Buys RockPile Energy”
CONE Midstream | Energy Companies | Energy Services | Industrywide Issues | M&A | Noble Energy | Pipelines

Noble/CONSOL Breakup Continues: Noble Sells 50% of CONE Midstream
May 19, 2017May 19, 2017

Noble Energy dropped a bombshell that it has sold its 100% interest in 385,000 Marcellus/Utica acres and wells producing 415 million cubic feet equivalent of natural gas in West Virginia and Pennsylvania for $1.225 billion to “an undisclosed buyer” (see Noble Energy Sells Remaining M-U Assets for $1.2B – Who Bought?). MDN exclusively shared the news of exactly the who the “undisclosed buyer” is: HG Energy (headquartered in Parkersburg, WV), backed with money from investment firm Quantum Energy Partners. HG is a “portfolio company” of Quantum. The press release announcing the acreage/asset sale went to great lengths to stress that Noble’s half operating interest in the CONE Midstream pipeline gathering system was not part of the deal. CONE is a 50/50 joint venture between CONSOL Energy (the “CO” part of the name), and Nobel Energy (the “NE” part of the name). CONE was Noble’s final connection to our region. No more. Yesterday, Noble Energy announced they’ve sold their 50% stake in CONE to Quantum Energy Partners for $765 million. This time Noble went ahead and announced the buyer, perhaps figuring MDN would find out and blab it any ;-). Here’s the announcement that Noble Energy has left the Marcellus/Utica building…
Read More “Noble/CONSOL Breakup Continues: Noble Sells 50% of CONE Midstream”
Energy Companies | Industrywide Issues | M&A | Pennsylvania | Warren Resources | Wyoming County (PA)

Thai Company Banpu Invests in Another 34 Marcellus Wells in NEPA
May 17, 2017May 17, 2017

One year ago, Banpu Pcl, Thailand’s largest coal producer, invested $112 million to purchase Range Resources’ Marcellus non-operated JV operations in Bradford County, PA (see Thai Company Buys Out Range Resources’ JV in NEPA for $112M). The “Chaffee Corners Joint Exploration Agreement” gave Banpu an ownership share in 62 producing wells and another 14 wells waiting on completion, and a share in 170+ more drilling locations. Talisman is the operator of the wells and the company that does the drilling (Banpu is just an investor). Banpu liked it so much, they did it again in January of this year (see Thai Company Banpu Makes 2nd Investment in Northeast Marcellus). The January deal gave Banpu a 10.24% stake in 10,000 acres of Marcellus leases, once again in northeastern PA, for $63 million. Chief Oil & Gas is the driller on the acreage in the second deal. Then in March, Banpu signed an agreement to invest $16 million into a venture with Tug Hill Marcellus (see Thai Company Banpu Invests Another $16M in PA Marcellus Wells). It seems that Banpu can’t get enough of the Marcellus in northeastern PA. The company just announced a fourth deal to invest in more NEPA acreage and wells. How many wells? What county is the new deal located in? And which driller is the operator of that acreage? We give you the details you won’t find elsewhere…
Read More “Thai Company Banpu Invests in Another 34 Marcellus Wells in NEPA”
Atlas Energy | Energy Companies | Industrywide Issues | M&A | New York | Ohio | Pennsylvania | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Titan Energy Sells Marcellus Assets, Buyer Rapidly Expanding
May 8, 2017

In February, MDN told you that Titan Energy, which used to be known as Atlas Energy/Resource Partners, was listing what appeared to be the rest of the acreage they still own on the Appalachian basin–some 494,229 acres–including rights for drilling in the Marcellus (see Titan Energy Puts 494K Appalachian Acres Up for Sale). On Friday, Titan announced it has signed an agreement to sell the acreage, along with 8,400 oil and gas wells across Pennsylvania, Ohio, Tennessee, New York and West Virginia, for $84.2 million to Diversified Gas & Oil (DGO). Yes, the vast majority of those wells are conventional (vertical only) and not shale wells. In fact, we’re not sure any of the wells are shale wells. However, Marcellus assets were part of the sale–so at least some of the acreage will allow for Marcellus drilling, should DGO want to pursue it. Although Titan is keeping its Utica Shale acreage, the company says it use the money from this sale to concentrate efforts on oil drilling in the Texas Eagle Ford Shale play. Titan is moving its headquarters from Pittsburgh to Houston, TX. In addition to the news about Titan selling its conventional assets and moving, the twin story (perhaps even more interesting) is that the buyer, DGO (nominally headquartered in Birmingham, Alabama, although actually a UK company), has been on a buying spree–snapping up 75,250 conventional acres (1,300 wells) in PA & WV earlier this year. All told, DGO now owns 1.6 million acres of leases and 10,000+ conventional oil and gas wells in Appalachia…
Read More “Titan Energy Sells Marcellus Assets, Buyer Rapidly Expanding”
Energy Companies | HG Energy | Industrywide Issues | M&A | Noble Energy | Pennsylvania | Statewide PA | Statewide WV | West Virginia

Noble Energy Sells Remaining M-U Assets for $1.2B – Who Bought?
May 3, 2017May 3, 2017

Yesterday Noble Energy dropped a bombshell that it has sold its 100% interest in 385,000 Marcellus/Utica acres and wells producing 415 million cubic feet equivalent of natural gas in West Virginia and Pennsylvania for $1.225 billion to “an undisclosed buyer.” That works out to be $3,181 per acre. Not included in the sale is Noble’s half operating interest in the CONE Midstream pipeline gathering system. It was just three years ago that Noble announced it would lease 138,000 feet in a new office building in Southpointe, and move in 200 employees (see Noble Energy’s Huge Vote of Confidence in the Marcellus). At the time, Noble’s CEO said the Marcellus is “the premiere gas play in the United States” and that the Marcellus figures prominently in Noble’s future plans. That was then, this is now. Noble will use the money from the sale to pay down essentially all of the debt the company incurred from its recent $2.7 billion purchase of Clayton Williams Energy–a deal that expanded Noble’s “core Delaware Basin position” (i.e. the Permian Shale in Texas, an oil play). All of the above is what you get from other news sources. The reason you read MDN is because we’ve found out who the buyer of the Noble acreage is…
Read More “Noble Energy Sells Remaining M-U Assets for $1.2B – Who Bought?”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Sunoco Logistics

Sunoco Logistics Partners Ceases to Exist as of Today
April 28, 2017April 28, 2017

As of today, the nameplate on the door that says “Sunoco Logistics Partners” is getting changed to “Energy Transfer Partners” (ETP). On paper (and for investors) Sunoco LP & ETP have been different companies, but functionally both companies have co-existed under the Energy Transfer Equity (ETE) umbrella for years–essentially as different divisions of the same company. Sunoco LP is (currently) best known for its Mariner East pipeline projects–along with the Marcus Hook refinery/terminal. ETP is (currently) best known for the recently completed Dakota Access Pipeline. Sunoco LP’s headquarters will move from Newtown Square, PA to combine with ETP’s HQ in Dallas, TX. For investors, Sunoco LP will stop trading at close of business today and become part of the ETP ticker symbol as of Monday. Shareholders for both companies approved the paper merger on Wednesday…
Read More “Sunoco Logistics Partners Ceases to Exist as of Today”
Energy Companies | EQT Corp | Industrywide Issues | M&A | Trans Energy

Keeping Trans Energy’s Bacon Out of Fire Earned Law Firm an Award
April 24, 2017April 24, 2017

Last October EQT announced a deal to buy Trans Energy, Inc., a public pure-play driller in the Marcellus in West Virginia, which will become a wholly-owned subsidiary of EQT (see EQT Buys Trans Energy + 60K Marc/Utica Acres in 2 Deals for $683M). EQT also bought Trans Energy joint venture partner Republic Energy’s share in their Marcellus jv. The land is located in Marion, Wetzel and Marshall counties (in WV). When the deal closed, investment bank Gordian Group strutted around making some big boasts about their role in the deal. Gordian, via a press release, took credit for keeping Trans Energy out of bankruptcy court and for soaking EQT on the purchase price (see EQT Closes on Trans Energy Deal; Investment Bank Makes Big Boasts). It seems Gordian isn’t the only one strutting about the the EQT/Trans Energy deal. International corporate law firm Haynes and Boone, with a big energy practice in Texas, also assisted with the deal. In fact, in a Haynes and Boone press release, they boast that keeping Trans Energy solvent long enough to sell out to EQT earned the law firm the 2016 “Out-of-Court Restructuring Deal of the Year” award by The M&A Advisor…
Read More “Keeping Trans Energy’s Bacon Out of Fire Earned Law Firm an Award”
Industrywide Issues | M&A

PwC Report: Oil & Gas M&A in 1Q17 Saw “Stunning” 160% Increase
April 24, 2017April 24, 2017

According to one of the top accounting/consulting firms in the world, PricewaterhouseCoopers (PwC), mergers & acquisitions (M&A) activity in the oil and gas sector in the U.S. set a new record high in 1Q17 for the first quarter of any year–$73.04 billion in deals. The report, titled “US Oil & Gas Deals insights first quarter 2017” (full copy below), says the market is quite pleased with The Donald’s pro-energy policies and is loosening up the money to fund new exploration and production. In fact, first quarter spending represents a “stunning 160% increase in deal value year over year.” Some 53 deals were announced in 1Q17, with upstream (i.e. exploration/drilling) taking the lion’s share with 32 deals worth $36.6 billion…
Read More “PwC Report: Oil & Gas M&A in 1Q17 Saw “Stunning” 160% Increase”
Energy Services | Industrywide Issues | M&A | Patterson-UTI | Seventy Seven Energy

Patterson-UTI Energy Completes Merger with Seventy Seven Energy
April 21, 2017April 21, 2017

As MDN told you last November, Patterson-UTI Energy, an oilfield services company with major operations in the northeast, is buying out and merging in Seventy Seven Energy (SSE) in an all-stock deal worth $1.76 billion (see Seventy Seven Energy Throws in the Towel, Sells to Paterson-UTI). SSE is the former Chesapeake Oilfield Operating company, the oilfield services subsidiary of Chesapeake Energy that Chessy spun out into its own company in July 2014 after it couldn’t find anyone to buy it (see Long Labor & Delivery: Seventy Seven Energy Born Yesterday). It was an ill-fated venture from the beginning. SSE never turned a profit after becoming its own company. In June 2016, SSE, which has major operations in the Marcellus/Utica, filed for bankruptcy, then emerged from bankruptcy two months later borrowing $100 million (see Seventy Seven Energy Pops Out of Chapter 11 Bankruptcy in 2 Mos.). With Patterson is buying it, they are on the hook for SSE’s debts. So even though the deal to buy SSE is a no-cash stock swap, Patterson still needs a boatload of cash to pay off SSE’s debts. So Patterson floating 15.8 million shares of stock at $26.45 per share to raise $418 million in order to pay off SSE’s debts (see Patterson-UTI Floats $418M of New Stock to Pay Off SSE’s Debts). The day has finally arrived. Yesterday Patterson closed on the deal and now SSE, nee Chesapeake Oilfield Operating, is no more…
Read More “Patterson-UTI Energy Completes Merger with Seventy Seven Energy”
Energy Services | Ethane | Industrywide Issues | M&A | NOVA Chemicals | Processing Plants | Williams

Williams Sells Gulf Coast Cracker Plant to NOVA Chemicals
April 18, 2017April 18, 2017

Williams Geismar Olefins facility – click for larger version

Midstream giant Williams has been on a mission to make the company economically stronger AND produce cash that can be used for various purposes. In August, Williams announced they would sell their Canadian assets for $1 billion (see Bold Move – Williams Selling Canadian Assets). In September, Williams announced another potential asset sale–the company’s 88.5% ownership interest in the Geismar, Louisiana olefins petrochemical plant (see Williams Considers Selling its Gulf Coast Ethane Cracker Plant). The Geismar olefins plant is an ethane cracker by another name. It uses either ethane or propane and chemically “cracks” it into ethylene and propylene–raw plastics used by manufacturers. What does the Geismar plant have to do with the Marcellus/Utica? Directly, not much. There may be some Marcellus/Utica ethane flowing to that plant for processing, although we haven’t heard that. We’re interested in the story because Williams is one of the major midstream companies operating in our region. Anything that affects the company and its ability to continue operating, including asset sales in other regions, interests us. So it was with keen interest that we noticed Williams has now done the deal. They’ve agreed to sell the Geismar plant to Canada-based NOVA Chemicals, for $2.1 billion. Williams plans to use the money from the sale to pay down debt and fund capital investments…
Read More “Williams Sells Gulf Coast Cracker Plant to NOVA Chemicals”
Bradford County | Energy Services | Industrywide Issues | M&A | Pennsylvania | Williams

Williams Closes Deal to Increase Ownership in NEPA Pipeline System
March 31, 2017March 31, 2017

Click for larger version

In 2014 Williams bought out Access Midstream, the renamed and former division of Chesapeake Energy called Chesapeake Midstream (see Big News: Williams Partners Buying Access Midstream for $6B). When Williams bought Access, one of the regional pipeline gathering systems it got as part of that deal is what Williams calls the Bradford Supply Hub (named after Bradford County, PA). In February, Williams announced a deal with a part-owner for portions of the Bradford Supply Hub, Western Gas, to buy out Western’s portion (see Williams Cuts Deal to Increase Ownership in NEPA Pipeline System). Through an elaborate deal, Williams gets Western’s 33.75% ownership stake in what is called the Rome and Liberty natural gas gathering systems (part of the Bradford Supply Hub), along with a check for $155 million. In return, Williams is transferring to Western its 50% ownership stake in the Delaware Basin JV Gathering pipeline system, located along the New Mexico/Texas border. That deal, first announced in February, is now done…
Read More “Williams Closes Deal to Increase Ownership in NEPA Pipeline System”
Energy Services | Industrywide Issues | M&A | Mammoth Energy Services | Sand/Proppant

OFS Mammoth Energy Buys Second Sand Co. to Keep on Frackin’
March 30, 2017March 30, 2017

Oilfield services company (OFS) Mammoth Energy Services, headquartered in Oklahoma City, OK, operates in both the Utica Shale and Permian Basin. Last week MDN reported that Mammoth, a new company formed in 2014 (but growing rapidly), had bought itself a sand mine/processing plant (Taylor Frac) in an effort to keep Mammoth’s fracking crews stocked with frack sand (see OFS Mammoth Buys Sand Co. to Ensure Steady Supply for Fracking). A couple of days later Mammoth did it again–purchasing a second sand mine (Chieftain Sand and Proppant) with twice the capacity. And they picked it up on the cheap, in a bankruptcy auction for $35 million…
Read More “OFS Mammoth Energy Buys Second Sand Co. to Keep on Frackin’”
Enbridge | Energy Services | Industrywide Issues | Jobs | M&A | Spectra Energy

Enbridge Axing 1,000 (Mostly) Spectra Energy Jobs
March 24, 2017March 24, 2017

Last September MDN reported on a midstream deal with major implications for the Marcellus/Utica: Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy, based in Houston, for $28 billion (see Canadian Enbridge Buying US Spectra Energy for $28B). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. The merger was completed in February (see Spectra Energy is No More – $28B Merger with Enbridge Complete). Unfortunately, this week Enbridge announced they are axing around 1,000 jobs (6% of the workforce), to “address the overlap” and optimize “synergies” in the newly-combined company. Most of the 1,000 jobs being axed are from the Spectra workforce in the Houston area. We wonder how many top managers were “overlap” and “synergy optimized?” Yeah, likely none…
Read More “Enbridge Axing 1,000 (Mostly) Spectra Energy Jobs”
Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Court Says was OK for ETE to Scuttle $33B Williams Takeover Deal
March 24, 2017March 24, 2017

Last year an elaborate midstream drama unfolded before our very eyes. Energy Transfer Equity (ETE) pushed and prodded and poked and cajoled and insisted, and finally with the help of an inside corporate raider, forced Williams to agree to a buyout/merger (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Then the bottom dropped out of the price of natural gas and drillers scaled back drilling and consequently midstream (i.e. pipeline) companies like ETE and Williams got pinched. And ETE got cold feet (see ETE Wants Out of Williams Merger/Takeover, Offering $2B Breakup Fee). Williams said “not so fast, you wanted us, you’ll be taking us” and consequently sued ETE to force the merger to happen (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). However, in the end, the merger never happened (see Dead as a Doornail: ETE Terminates Merger with Williams). Since breaking the agreement, Williams and ETE have been in court battling over lots of things, including a $1.5 billion breakup fee. Earlier this week an appeals court ruled ETE was within its rights to break the deal. What does that mean about paying Williams a breakup fee?…
Read More “Court Says was OK for ETE to Scuttle $33B Williams Takeover Deal”
Energy Services | Industrywide Issues | M&A | Mammoth Energy Services | Sand/Proppant

OFS Mammoth Buys Sand Co. to Ensure Steady Supply for Fracking
March 22, 2017March 22, 2017

Oilfield services company (OFS) Mammoth Energy Services, headquartered in Oklahoma City, OK, operates in both the Utica Shale and Permian Basin. Mammoth offers services like “completion and production services, natural sand proppant services, contract land and directional drilling services and remote accommodation services.” Mammoth is a baby company, formed in 2014, but growing rapidly. The company booked $243 million in revenue for the 12 months ended June 30, 2016 (see Mammoth Energy 3Q16: “Intense Fracs” in Utica Shale). OFS companies like Mammoth do a lot of fracking. Lately there has been talk and concern that there won’t be enough frack sand to meet all of the increasing demand (see Go Pound Sand, Please! Proppant Shortage on the Way?). Mammoth wants to reassure its customers that it will have plenty of sand for fracking–so it just went out and bought its own sand mine! Yesterday Mammoth announced it has cut a deal to buy Taylor Frac, which owns a 0.7 million ton per year sand mine and processing plant. In addition, Mammoth cut a deal to buy Stingray Energy Services and Stingray Cementing, which offer services in fresh water transfer, equipment rental, re-fueling and cementing, primarily in the Marcellus/Utica region. Here’s the lowdown on the baby Mammoth that’s growing up rapidly…
Read More “OFS Mammoth Buys Sand Co. to Ensure Steady Supply for Fracking”